Q - Why do I need to use
a broker?
A – Because the
Owner has a professional experienced Agent representing
him. Most brokers and agents specialize in one type of
commercial real estate, such as office space, retail
space, or industrial space. They have significant
experience with these types of deals and will know what
to watch out for. During negotiations, the broker's
knowledge of current market conditions gives you more
power and leverage. And on the buy or lease side of the
transaction, you really have nothing to lose -- your
broker's commission is paid by the seller or landlord.
Q - How much does a
broker charge?
A - If you're
buying or leasing, the commission is typically paid by
the seller or landlord, and is split between the
seller's agent and the buyer's agent. Therefore, you
have no downside in choosing to be represented by a
broker.
Q - What about the
agent’s fees and charges?
A - Agents fees
are generally not regulated and are negotiable. Any
successful investor will tell you that if you choose the
right agent they are worth far more than the fees they
charge. Many wealthy property investors owe their
success to their choice of a professional real estate
agent and they did not gain that agent's loyalty by
cutting fees. However, you should never choose an agent
on the fee structure alone. The final result is where
the money is made not through negotiating lower fees.
Q - How do I choose the
right agent?
A – Look for
experience, expertise, and credibility. Choose an agent
that you feel you have the best chemistry with. After
all, you’re going to spend 100’s of hours with him/her.
Don’t just choose a company because you recognize the
name. Each Brokerage firm has agents with as much
experience, expertise, and credibility as they have.
Many of the best agents left the larger more recognized
firms because they had great ideas of their own and
wanted to get away from the bureaucracy, politics, and
other corporate issues. What’s more important, shaking
hands with a celebrity who can only afford to give you
1/20th of their time, or working with an experienced
expert in a small independent firm who will give you
100% of their time?
Q – We have multiple
locations with lease expirations at different times. We
are also owners in a few of our locations. What value
can you add in helping us to manage this portfolio more
profitably?
A – I think
this is our strong suit. We first attack the problem
utilizing a high level macro approach of getting a
complete picture and a clear understanding of your
portfolio. We then need the same complete picture and
understanding of your corporate mission, goals,
objectives, and culture. We will thoroughly analyze the
two and devise and present a specific corporate strategy
and plan for managing your portfolio in the most
profitable manner that also embraces your corporate
objectives and culture. We will be happy to discuss
this in more detail with you at your request.
Q- We
are happy with our current space and location. Our
lease still has 2 or more years left, but the market has
changed and our rate seems high. Do we have any options
at this point?
A – Yes you
do. It somewhat depends on your size, growth
projections, and new term you’re willing to commit to.
However, when the market is down, landlords also want to
keep valuable tenants because it takes them a lot longer
to lease empty space. We will be happy to meet with
you, discuss your options, and show you various
alternatives that could well lower your overall facility
cost now and in the future. We will do this at no cost
to you.